Sustainable tourism has become a central concept as the global tourism industry has become one of the world’s largest industries. Sustainable innovation in services and specifically in hospitality has attracted considerable interest in recent years, partly because its strong ties to social and environmental concerns, and partly because its impact on innovation performance is still a puzzle. By means of a model where both innovation practices and eco-innovations are tested in relationship with each other, this study proposes a comprehensive analysis of eco-innovation orientations and their effects on innovation output and performance. Drawing on primary data collected from a global set of hotels, this paper concludes that organizational constraints, customer characteristics and firm-level economic challenges increase or limit the ability of hotels to achieve a sustainable orientation in their innovation strategies.